BANGALORE: At the end of every financial year, many tax payers frantically make investments to minimize taxes, without adequate knowledge of the various available options. The Income Tax Act offers many more incentives and allowances, apart from the popular 80C, which could reduce tax liability substantially for the salaried individuals. Paying higher tax is not a wise man's work, instead you must learn about how to invest smartly and save tax thereon.

Here are seven smart tips to help you save more and reduce taxes at the age of 20:

1. Utilize Section 80C

Section 80C offers a maximum deduction of up to 1,00,000. Utilize this section to the fullest by investing in any of the available investment options. A few of the options are like Public Provident Fund, Life Insurance Premium, National Savings Certificate, Equity Linked Savings Scheme, 5 year fixed deposits with banks and post office and tuition fees paid for children's education, up to a maximum of 2 children.

 Since younger individuals like those in their 20′s to even early 30′s have a higher risk taking capacity, tax planning using market linked instruments offer good option to create wealth as well as save tax under section 80c of the income tax act.